Think GLD, SLV, etc., as we've been saying.
Here:
"In the past two decades we have seen an unprecedented financialization, if you will, of all commodities. Pretty much everything is traded either through glibly created ETFs or through futures backed up by warehouses somewhere or through physical hoarding via tanker ships. The pools of money that have chosen to make commodities as an asset class is much larger than we can ever know because those funds aren't registered anywhere and pretty much report to no one.
"I am sure at one time, before the ETFs and the large pools of capital, you might have traded these commodities on actual supply and demand. ...
"What mattered was the financial buyer not the natural buyer."
So we all have been paying too much for this stuff for a long time already.
Same thing happened in housing, and commodities will end up just like housing, down big time.
